2018 (7) TMI 1711

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....lant. 2. The facts of the case are that the appellant is manufacture of Automobile parts and procuring inputs on payment of duty. After manufacturing the goods, the goods have been cleared on payment of duty. On the basis of investigation certain discrepancies were found and on the basis of discrepancies, the show cause notice was issued to deny the Cenvat Credit on the following grounds:- (a) Cenvat Credit sought to be denied on moulds and dies which have been cleared by the appellant to their job workers without reversal of Cenvat Credit to the tune of Rs. 18,90,380/-. (b) Cenvat Credit sought to be denied as the appellant has procured inputs and paid duty thereon took Cenvat Credit but later on the price of the goods procured by the a....

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....d goods on which the appellant has paid duty. Therefore, whole exercise is Revenue neutral and said issue came before this Tribunal in the case of Rico Auto Industries Ltd. vs. CCE, Delhi-III reported at 2018 (5) TMI 468 - CESTAT Chandigarh wherein this Tribunal has observed as under:-  "Having considered the rival contention and on perusal of the records, I find that the provisions of clauses (b) of sub-rule 5 of Rule 4 of Cenvat Credit 2001 provide that if moulds are brought into the factory by a manufacturer, he is eligible for availment of Cenvat Credit of duty paid on the same. Further, the manufacturer of the goods is required to pay Central Excise duty on the goods manufactured. Incidentally, in the present case, the manufactur....

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....uty:- As per Rule 3(5) of Cenvat Credit Rules, 2004, assessee is required to reverse the Cenvat Credit if capital goods or inputs cleared as such. Admittedly, the capital goods in question has been put to use by the appellant and after use of the capital goods, the said capital goods has been cleared by the appellant on payment of duty on transaction value. Therefore, as held by the Hon'ble High Court of Bombay in the case of Cummins India Ltd. vs. CCE reported at 2009 (234) ELT A120 (Bom.) the assessee is required to pay duty on the capital goods on transaction value, which the appellant has already paid. Therefore, the reversal of Cenvat Credit is not required. (d) Denial of Cenvat Credit on inputs which has been scraped:- The case of....